Feed in Tariff Cuts

In the press

On Tuesday 28th August 2015, the Department of Energy and Climate Change (DECC) launched a consultation proposing to cut the Feed­in Tariff (FiT) rates for solar PV installations by up to 87%.

The FiT scheme was introduced in 2010 to be able to encourage the installation of low-carbon, renewable energy generation facilities. It encourages this by paying for every kilowatt hour it generates.

The rate would depend on the size of the system, what technology was installed, and when the system was installed. The two major changes in the consultation include: introducing highly reduced new generation tariffs, and producing a cap on new FiTs expenditure between £75­100 million by 2018/19. Other changes also include: a minimum energy efficiency criteria, limiting the FiT to existing technologies, removing the generation tariff for new installations, and deployment caps leading to the phased closure of the scheme in 2018/19. These are all proposed in the consultation. According to the consultation, the FiT scheme has currently exceeded all the renewable energy deployment expectation, having passed or coming close to passing projections from the 2012 Comprehensive Review for 2020/21 for wind, hydro and anaerobic digestion.

The consultation is set to run until Friday 23rd October.

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